Engineering company to acquire manufacturer
IMI Precision Engineering announced it has agreed to acquire Bimba, a manufacturer of pneumatic, hydraulic, and electric motion solutions with an extensive distributor network principally servicing the North American industrial automation market.
The transaction is fully aligned with IMI’s strategy and fulfills its stated objective of increasing its US revenues while extending IMI Precision Engineering’s presence in its core Industrial Automation segment. In particular, the acquisition provides the platform to accelerate IMI Precision Engineering’s North American growth objectives by leveraging both Bimba’s strong brand and its market leading US distributor network.
The acquisition is intended to add depth to both companies’ existing product offerings by combining Bimba’s cylinder products with IMI Precision Engineering’s valve and air preparation portfolio. The integration team’s first priority will be to present a unified approach to the market while building a platform to accelerate the commercial and distribution opportunities which the combination creates.
The consideration for the transaction will be $198 million. Completion is conditional on merger clearance and the approval by Bimba’s employee stock ownership plan “ESOP), both of which are expected to take place in early 2018. The acquisition is expected to be earnings enhancing in the first full year of ownership and return on capital is expected to exceed IMI’s cost of capital within three years.
IMI Precision Engineering
– Edited from an IMI Precision Engineering press release by CFE Media. See more Control Engineering CNC and motion control stories.